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Bloomberry looks to raise fresh funding abroad

Economy

Jun 142013

Bloomberry looks to raise fresh funding abroad

MANILA, Philippines – Razon-led Bloomberry Resorts Corp., the operator of the $1.2-billion Solaire Resort and Casino in Entertainment City, is looking to raise fresh funding abroad by tapping an international unit for the issuance of bonds and notes. The company said in a disclosure to the stock exchange that its board of directors approved the amendment in the articles of incorporation “to include in its primary purpose the power to guarantee the obligations of its subsidiaries or affiliates or any entity in which the corporation has lawful interest.” “This amendment will allow Bloomberry to raise funds through issuance of bonds or notes by offshore financing vehicles that it will guarantee,” it added. The guarantee clause to an offshore unit also provides Bloomberry a vehicle to raise funds from international investors. The amendment in the articles of incorporation is subject to shareholders’ approval during the company’s annual stockholders meeting on June 24. Since early this year, several listed firms have guaranteed the debts of their offshore units. In January, the overseas unit of taipan John Gokongwei’s investment vehicle JG Summit Holdings Inc. announced plans to raise funds through corporate notes. JG Summit will guarantee the debts of subsidiary JGSH Philippines Ltd. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 In March, Filinvest Development Corp. of the Gotianun family said it will guarantee the payment of interest rates of an offshore unit’s planned issuance of $300 million bonds. Bloomberry, for its part, has yet to announce the amount it intends to Read More …

MVP not keen on SMC’s Meralco shares

Economy

Jun 142013

MANILA, Philippines – The group of Manuel V. Pangilinan is comfortable with its shareholding in the country’s largest power distributor Manila Electric Co. (Meralco) and is not likely to buy out San Miguel Corp.’s (SMC) assets in the firm. “We are comfortable with our current shareholding in Meralco and we would be prepared to assist should San Miguel decide to dispose assets in Meralco,” Pangilinan told reporters following the stockholders meeting of Philippine Long Distance Telephone Co. (PLDT) yesterday. “There has been no final decision to what extent we may or may not participate, but if we do, we may consider participating in a modest way,” he said further. He said that should the group decide to acquire more Meralco shares, it would not be to the point where their total stake would go over 51 percent. “(We will participate but) not to the point it will trigger tender offer obligation,” he said. A mandatory tender offer is triggered when an investor accumulates more than 51 percent stake in a public company. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The acquiring company should then offer to buy all shares held by minority shareholders. SMC president and chief operating officer Ramon S. Ang said earlier that the diversifying conglomerate is willing to sell its stake in Meralco. SMC owns around 36 percent of Meralco, making it one of the top shareholders in the company. Beacon Electric Asset Holdings, Inc., a subsidiary of Pangilinan-led Metro Pacific Investments Corp., controls nearly Read More …

Hot money outflow in May largest since 1999

Economy

Jun 142013

Hot money outflow in May largest since 1999

MANILA, Philippines – Foreign portfolio investments slumped the most last month since 1999 after investors shied away from emerging markets on indications US stimulus measures will be scaled down. The Bangko Sentral ng Pilipinas (BSP) reported on Friday that portfolio placements— usually placed in the bond and stock markets— reversed to a net outflow of $640.84 million in May, the first for the year. A net outflow indicates more investments left the country than entered. The May tally was also the highest monthly outflow based on available records from the BSP website that dated back to 1999. For the first five months though, portfolio investments— also called hot money for the ease they enter and exit economies— remained on the positive territory at $1.577 billion, up 74.4 percent from last year’s $904.16 million. The BSP expects hot money net inflow to reach $3 billion this year, although that amount may be revised next week. “The announcement of a possible scaling down of quantitative easing (QE) in the United States” drove investors to withdraw funds from emerging markets such as the Philippines last month, the BSP said in a statement. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 As the United States economy showed signs of recovery, the US Federal Reserve has signaled last month that some of its members favor a “downward” adjustment to its QE, which involves the purchase of $85 billion worth of securities every month. The measure, instituted five years ago, was meant to flood the Read More …

HDO to be issued vs companies, stores using fake software

Economy

Jun 142013

HDO to be issued vs companies, stores using fake software

Photo shows Computer and hardware retail shops along Gilmore Avenue in Quezon City. KARL AGUILAR/URBAN ROAMER MANILA, Philippines – The National Bureau of Investigation (NBI) on Friday announced that Hold Departure Orders (HDO) will be issued against an owners of hardware retailers found to be hard loading branded computer units with pirated software. The NBI said that Cebu hardware shops Nutech, MSi and Across Technology were caught using illegal software in a raid last May, while four other computer establishments were caught in a crackdown in November 2012. Once found guilty for copyright infringement, the store operators may be issued HDOs, restraining them from overseas travel. “Hard-disk loading is a form of software piracy where resellers of computer hardware load unauthorized copies of software onto the machines they sell,” lawyer Dante Jacinto, chief of NBI’s Intellectual Property Rights arm, explained. Jacinto said that besides hold orders, copyright violators may also face business permit cancellation, revocation of US visas, tax investigations and tax evasion charges for selling and using fake software. The Pilipinas Anti-piracy Team (PAPT) also found the Cardinal Audio Center, PC Chain Superstore, PC Gadgets & Mobile Hub and Acenet Unlimited Business Computer Inc. to be installing pirated programs into Acer, Lenovo and Samsung laptops in a crackdown in Visayas. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Jacinto, meanwhile, discouraged businesses and computer users from installing pirated software into their desktop units as this is not only a crime, but can place the computer’s system at risk. Read More …

Consumer confidence hits record high

Economy

Jun 142013

MANILA, Philippines – Consumer confidence hit a record high this quarter as the country’s strong economic growth is expected to translate to more investments, hiring and higher salaries, the Bangko Sentral ng Pilipinas (BSP) reported on Friday. According to the results of the Consumer Expectations Survey, the over-all confidence index (CI) climbed to -5.7 percent for the next quarter from -11.2 percent in the previous three months. The current CI— although still negative— is the highest since the BSP survey began in the first quarter of 2007, central bank Assistant Governor Ma. Cyd Tuaño-Amador told reporters in a briefing. A negative result in the index indicates the pessimists outnumbered the optimists “although the margin between the two declined to its lowest ever,” she said. Rosabel Guerrero, director of the BSP’s department of economic statistics, attributed the result to “better job opportunities, increased investment inflows that would support job creation and salary increases.” “Consumers also cited the country’s strong macroeconomic fundamentals and the investment grade credit rating by Fitch Ratings as factors that contributed to their more bullish outlook,” she told reporters. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The local economy expanded by 7.8 percent in the first three months of the year, surpassing market expectations to become Asia’s fastest growing economy. This was achieved against the backdrop of slow three percent inflation. Slow inflation and a “stable” foreign exchange rate give consumers more purchasing power to spend for goods and services, in addition to public savings. Based Read More …

Cebu Pacific, PAL eye Iloilo-Korea flights

Economy

Jun 142013

Cebu Pacific, PAL eye Iloilo-Korea flights

MANILA, Philippines – Flag carriers Cebu Pacific and Philippine Airlines are looking into the possibility of offering direct flights from Iloilo to Korea, the firms’ representatives said on Friday. PAL Iloilo Area Manager Juancho Demaguila said the company’s general sales agent is now considering an Iloilo to Korea flight due to the influx of Korean tourists coming to Iloilo to travel and study. Meanwhile, Rosalie Gamutan, senior supervisor of Cebu Pacific, said the budget carrier is also planning to offer the same flights following its launch last year of direct flights from Iloilo to Hong Kong and Singapore. Overseas Filipino workers from Western Visayas are expected to benefit from the direct flights, along with tourists from the region. The two airline companies are also reportedly studying the possibility of having direct flights from Iloilo to Xiamen, China and Japan to boost tourism in the country.

iRemit to venture into financial derivatives

Economy

Jun 132013

iRemit to venture into financial derivatives

MANILA, Philippines – I-Remit Inc., a Filipino-owned global remittance firm, will venture into financial derivative activities as a safeguard against the impact of fluctuating foreign exchange rates, a company disclosure to the Philippine Stock Exchange (PSE) said. iRemit said its board has approved the amendment of the corporation’s primary purpose to give way to this new function. “With the amendment, and subject to the Bangko Sentral ng Pilipinas’ regulatory approval, the corporation will no longer be limited to engaging in spot foreign currency transactions,” it said. It added that it “will be able to engage in financial derivative activities such as foreign currency swaps, forwards, options or other similar instruments.” It would be noted that due to the peso’s appreciation against the dollar in the first three months of the year, iRemit’s income dropped 95 percent to P1.6 million from P33 million in the same period in 2012. As iRemit’s operation is dependent on transaction fees of foreign exchange particularly the peso, any forex gyration would greatly impact on its profit. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 Due to the sharp peso appreciation, the company said its trading gains also suffered. For the first quarter, the company’s revenues dropped 11.8 percent to P175.8 million from P199.4 million in the same period last year. iRemit said the decline in sales was“mainly due to significant net realized foreign exchange loss as the Philippine peso continued to appreciate against the US dollar.” Despite the income drop, total transactions jumped six Read More …

New York considers crackdown on counterfeit luxury goods

Economy

Jun 132013

New York considers crackdown on counterfeit luxury goods

NEW YORK (AP) — It’s one of the worst kept secrets in New York. Hidden around the city are counterfeit goods labeled “Prada” or “Louis Vuitton” or some other luxury brand. They’re sold for a pittance to bargain hunters from around the world who flock to Chinatown. Now, if a proposed bill passes the City Council, customers caught buying these items could be punished — with a fine of up to $1,000, or even prison time. A City Hall public hearing is scheduled for Thursday to examine the black-market business. The bill sponsor is Council member Margaret Chin. She expects a vote sometime in the coming months.

Cignal Digital TV eyes more subscribers

Economy

Jun 132013

MANILA, Philippines – Satellite television provider Cignal Digital TV is aiming to have more than 600,000 subscribers by the end of this year, after hitting the 500,000 mark, with the roll-out of affordable pricing schemes. “We want to exceed 600,000 subscribers this year,” Cignal vice president for marketing Guido Zaballero told reporters. At present, he said the firm has a total of 500,000 subscribers, with the bulk or 75 percent having prepaid accounts. Most subscribers are in Luzon and Visayas. Zaballero said the introduction of more affordable pricing schemes has allowed the firm to see its subscribers rise to 500,000 in the middle of this year from 440,000 as of the end of 2012. The lowest priced plan is at P390 per month, while the premium plan costs P1,590 per month. Business ( Article MRec ), pagematch: 1, sectionmatch: 1 The new plans were launched in January. Zaballero said the new plans are seen to support a further increase in Cignal’s total subscribers. As the total number of subscribers go up, he said the firm is also optimistic that it could start seeing positive earnings before taxes this year. “The first quarter (income) is quite good. I think we can see positive earnings by the second-half,” he said. Launched in 2009, Cignal broadcasts to households and commercial venues nationwide using direct broadcast satellite technology. It is owned and operated by MediaScape Inc., a subsidiary of MediaQuest Holdings, the media partner of the PLDT Group of Companies.

Sun Life retains top spot in life insurance sector

Economy

Jun 132013

Sun Life retains top spot in life insurance sector

MANILA, Philippines – Sun Life of Canada (Philippines), Inc. has once again claimed the top spot in the local insurance industry based on premium income in 2012. In the official rankings released by the Insurance Commission on premium income, Sun Life capped 2012 with net premium income of P20.1 billion, up 44 percent from a year ago. The year-end result has again made Sun Life the country’s number one life insurance company. Sun Life topped the industry in 2011 with its net premium income of P13.9 billion. Sun Life also led the industry in new business, with P3.2 billion in weighted first year premiums, 36 percent higher than the previous year’s level. Combining these results with that of our joint venture company with the Yuchengco Group, Sun Life Grepa Financial, Inc., which posted P5.8 billion in premiums in 2012, the Sun Life group in the Philippines made P26 billion in premium income, 86 percent more than 2011. In a statement, Sun Life Philippines president and CEO Riza Mantaring said: “2012 was again another stellar year for Sun Life. Not only did we break records in our life business, we posted robust gains in mutual funds where our balanced and equity funds were among the best performing funds in the industry. Assets under management of our mutual funds business stood at P28.7 billion as of year-end 2012.” The Sun Life chief attributed the company’s robust 2012 growth to new products, aggressive expansion programs, effective branding campaigns, intensive agency recruitment and heightened Read More …

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